Planners Have Determined That Sales Will Increase by 20% Next

question 59

Multiple Choice

Planners have determined that sales will increase by 20% next year,and that the profit margin will remain at 10% of sales.Which of the following statements is correct?

• A) Profit will grow by 20%.
• B) The profit margin will grow by 10%.
• C) Profit will grow proportionately faster than sales.
• D) Ten percent of the increase in sales will become net income.

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Definitions:

Adjudicated Insane

A legal status conferred upon an individual who has been formally deemed by a court to lack the mental capacity to manage their own affairs due to mental illness.

Void

A term referring to a contract or legal agreement that is invalid or without legal effect from its inception.

Disaffirmance

In contract law, the right of a party to renounce a contract to avoid legal obligations, typically used in cases involving minors or instances of fraud.

Majority

The age at which a person is considered an adult and has the legal rights and responsibilities of an adult, or a more than half portion of a group.